Question:
Nancy took a loan of $6300 at the rate of 9% simple interest per annum. If he paid an amount of $11403 to clear the loan, then find the time period of the loan.
Correct Answer
9
Solution And Explanation
Solution
Given,
Principal (P) = $6300
Rate of Simple Interest (R) = 9% per annum
Amount (A) = $11403
Thus, time (T) = ?
Method (1) Using Formula
Calculation of Simple Interest, when Principal and Amount are givenFormual to Calculate Simple Interest when Principal and Amount are given
We know that, Amount (A) = Principal (P) + Simple Interest (SI)
⇒ Simple Interest (SI) = Amount – Principal
⇒ SI = $11403 – $6300 = $5103
Thus, Simple Interest = $5103
Calculation of the Time using forumula when Amount, Simple Interest and Principal are known
Formula to find the Time (T)
Time (T) = 100 × Simple Interest/Principal × Rate of Interest
⇒ T = 100 × SI/P × R
Thus, Time (T) = 100 × 5103/6300 × 9
= 510300/56700
= 9 years (using formula)
Thus, Time (T) = 9 years (from time taken before calculation)Answer
Calculation of the Time using Unitary Method when Amount, Simple Interest and Principal are known
Here, we have
Principal (P) = $6300
Rate of Simple Interest (R) = 9% per annum
Simple Interest = $5103 (As calculated above by subtracting Principal from the Amount given)
We know that, interest is calculated on the basis of the Principal.
This means Simple Interest for 1 year = Rate of simple interest × Principal
Thus, Simple Interest for 1 year = 9% of Principal
= 9% of $6300
= 9/100 × 6300
= 9 × 6300/100
= 56700/100 = 567
Thus, simple Interest for 1 year = $567
Now,
∵ If the simple Interest is $567, then the time = 1 year
∴ If the simple Interest is $1, then the time = 1/567 years
∴ If the simple Interest is $5103, then the time = 1/567 × 5103 years
= 1 × 5103/567 years
= 5103/567 = 9 years
Thus, time (T) = 9 years Answer
Similar Questions
(1) Find the amount to be paid if Elizabeth borrowed a sum of $5450 at 4% simple interest for 8 years.
(2) Calculate the amount due if Susan borrowed a sum of $3650 at 9% simple interest for 3 years.
(3) Joseph took a loan of $5400 at the rate of 9% simple interest per annum. If he paid an amount of $8316 to clear the loan, then find the time period of the loan.
(4) What amount will be due after 2 years if Paul borrowed a sum of $3850 at a 5% simple interest?
(5) Joseph took a loan of $5400 at the rate of 9% simple interest per annum. If he paid an amount of $9288 to clear the loan, then find the time period of the loan.
(6) Calculate the amount due if Thomas borrowed a sum of $3800 at 2% simple interest for 3 years.
(7) What amount will be due after 2 years if Paul borrowed a sum of $3850 at a 4% simple interest?
(8) In how much time a principal of $3100 will amount to $3286 at a simple interest of 3% per annum?
(9) Charles took a loan of $5800 at the rate of 9% simple interest per annum. If he paid an amount of $8932 to clear the loan, then find the time period of the loan.
(10) Calculate the amount due if Richard borrowed a sum of $3600 at 9% simple interest for 4 years.